TCUD February Newsletter (link)

The February 21, 2018 issue is now available on the Department’s website at:

 Newsletter February 2018

 The newsletter is published by the Credit Union Department, State of Texas, and highlights department activities, policy changes, and other information that might be useful to state-chartered credit unions in Texas.


CFPB ACTING DIRECTOR ANNOUNCES CHIEF OF STAFF

CFPB ACTING DIRECTOR ANNOUNCES CHIEF OF STAFF

Washington, D.C. — The Consumer Financial Protection Bureau’s Acting Director Mick Mulvaney announced today that he has named Kirsten Sutton Mork chief of staff for the agency. Ms. Sutton Mork has been serving as staff director of the House Financial Services Committee under Chairman Jeb Hensarling.

“I am pleased to announce Ms. Sutton Mork as the new chief of staff at the Bureau of Consumer Financial Protection,” said CFPB Acting Director Mick Mulvaney. “I worked with Kirsten during my tenure as a member on the House Financial Services Committee and can attest to her in-depth financial policy expertise, proven track record of developing and implementing strategic initiatives, and ability to manage a team. Kirsten brings with her more than a decade of invaluable experience that will advance the mission of the Bureau and make it more efficient, effective, and accountable.”

Ms. Sutton Mork’s tenure on Capitol Hill spans the financial crisis and post-crisis legislative response. She staffed Hensarling during House Financial Services Committee, House and conference committee consideration of the legislation that established the Bureau, the Dodd-Frank Act, and she is intimately familiar with the Bureau’s statutory mission and obligations. She was appointed deputy staff director to the House Financial Services Committee in 2013 and became staff director in early 2017. Ms. Sutton Mork attended Wheaton College where she received a B.A. in communications.

 

The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by regularly identifying and addressing outdated, unnecessary, or unduly burdensome regulations; by making rules more effective; by consistently enforcing federal consumer financial law; and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.


Hensarling Delivers Opening Statement at FSOC Hearing

Hensarling Delivers Opening Statement at FSOC Hearing

WASHINGTON – Financial Services Committee Chairman Jeb Hensarling (R-TX) delivered the following opening statement at today’s full committee hearing with Treasury Secretary Steven Mnuchin on the Annual Report of the Financial Stability Oversight Council (FSOC):

Mr. Secretary – this is your first appearance before the House after the Tax Cuts and Jobs Act was signed into law. I want to let you know, on behalf of the majority, how grateful we are to you and the president for your leadership and for helping to sign this act into law. It is truly, truly historic.

After eight years of failed economic policies that led to the slowest, weakest recovery in the modern era, the economy is starting to take off and wages are finally growing again. Consumer optimism abounds.

How ironic, but totally predictable, that equity markets would now swoon over the prospects of higher interest rates and possible inflation associated with a breakout of economic growth. Artificially low interest rates may have benefitted some on Wall Street but they haven’t been particularly helpful to Main Street.

We have always known that the Fed would face significant challenges in unwinding its balance sheet when the economy took off. If you’re listening, good luck, Chairman Powell. You volunteered for the job.

But today, the underlying economy is strong and getting stronger due to the policies of the Trump Administration. We’re averaging 3 percent growth again. Unemployment remains at a 17 year low, wages just grew at 2.9 percent – the fastest in almost a decade. 2 million Americans have gone back to work. All of this in President Trump’s first year in office, and we are just now on the leading edge of the Tax Cuts & Jobs Act.

Let’s take a look at the impact on the financial services industry alone.

JP Morgan Chase recently announced it will be making a $20 billion, five-year investment across its business. In addition to increasing wages for their employees, they plan to boost small-business lending by nearly 20%.

In my hometown of Dallas, Comerica announced it is boosting its minimum wage to $15 and giving a $1,000 bonus to 4,500 employees.

Nationwide is giving its employees a $1,000 bonus and increasing its 401(k) match.

Visa is also increasing its 401(k) eligibility and contributions, as well.

BB&T is raising its minimum wage from $12 to $15 an hour and giving its employees a onetime bonus of $1,200.

Hardly crumbs.

And these are just a few of the financial services companies that have announced benefits due to the Tax Cuts and Jobs Act. Again, Mr. Secretary, thank you and thank you to the president.

Unfortunately, tax reform alone will not unleash our nation’s full economic potential. Why? Because, for the last eight years our economy has been drowning in a sea of complex, onerous, expensive and job crushing Washington red tape. Fortunately, the Trump Administration has aggressively cut needless red tape like few others. But much work remains, including at the Financial Stability Oversight Council.

FSOC can clearly serve a vital function in promoting financial stability by monitoring market developments, facilitating information sharing across regulatory silos, and making policy recommendations to Congress to mitigate risk.

Unfortunately, FSOC has proven it can also harm our economy through its designation of SIFI’s.

Under the last administration FSOC simply eviscerated G.E. Capital, one of America’s great companies. One that had capitalized millions of small and midsize companies, from local bakeries to furniture stores. It’s just gone.

In a dangerous, unlawful and misguided effort it attempted to designate MetLife a SIFI; an insurance company. Fortunately, the decision was found to be “arbitrary and capricious” and overturned.

Mr. Secretary, I am encouraged by much of what I read in FSOC’s annual report under the new leadership of a new administration. I look forward to hearing more about it.


Hensarling Announces Date for Fed Chairman Powell’s Semi-Annual Testimony

Hensarling Announces Date for Fed Chairman Powell’s Semi-Annual Testimony

WASHINGTON- Financial Services Committee Chairman Jeb Hensarling (R-TX) today announced that Federal Reserve Chairman Jerome Powell will appear before the Committee on Wednesday, February 28 at 10 a.m. ET to deliver the Federal Reserve’s semi-annual monetary policy report to Congress and to discuss the state of the economy.

The hearing will take place in Room 2128 of the Rayburn House Office Building. Additional information, including a live video of the proceedings, will be available on the Committee’s website.

MEDIA RSVP: Due to high demand and limited seating, press seats during the hearing will be given out to media credentialed by the House media galleries in the order in which they are requested and limited to one seat per outlet. An overflow room with live broadcast of the hearing will be available in Rayburn 2220. To RSVP for a seat at the hearing, e-mail Christine Sellers (christine.sellers@mail.house.gov).

LOCK-UP: The Committee, assisted by the House Press Gallery, will be conducting a lock-up for Chairman Powell’s testimony the morning of the hearing. More information will be released at a later date.


Data Security in the Modern World-FSOC article (link)

FSOC: Data Security in the Modern World-

WASHINGTON – The Subcommittee on Financial Institutions and Consumer Credit held a hearing today to examine the current data security and breach notification regulatory regime, and identify potential opportunities to reform the current framework in order to reduce vulnerabilities and shortcomings in the system and better protect consumers.

As reliance on technology increases, so do data breaches and increased risk to consumers and businesses in all sectors of the economy. Due in part to a patchwork of conflicting state laws, data security and breach notification standards have long been a subject of considerable debate.

 

click here to read the full article

 


CFPB issues Request for Information on Supervision Process

CONSUMER FINANCIAL PROTECTION BUREAU ISSUES REQUEST FOR INFORMATION ON SUPERVISION PROCESSES

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (Bureau) today issued a Request for Information (RFI) about the Bureau’s supervision processes. The Bureau is seeking comments and information from interested parties to assist in assessing the overall efficiency and effectiveness of its supervision program and whether any changes to the program would be appropriate. This is the fourth in a series of RFIs announced as part of Acting Director Mick Mulvaney’s call for evidence to ensure the Bureau is fulfilling its proper and appropriate functions to best protect consumers. This RFI will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities. The next RFI in the series will address the Bureau’s external engagement processes, and will be issued next week.

The RFI on supervision processes is available at: https://files.consumerfinance.gov/f/documents/cfpb_rfi_supervision-program_022018.pdf

The Bureau will begin accepting comments once the RFI is printed in the Federal Register, which is expected to occur on February 20. The RFI will be open for comment for 90 days.

The Bureau anticipates issuing RFIs on the following topics in the coming weeks:

*   External Engagement
*   Complaint Reporting
*   Rulemaking Processes
*   Bureau Rules Not Under §1022(d) Assessment
*   Inherited Rules
*   Guidance and Implementation Support
*   Consumer Education
*   Consumer Inquiries

More information about the call for evidence is available at: http://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/call-for-evidence/


Texas 2018 Hotlist: The most competitive races in this year’s election (link)

Texas 2018 Hotlist: The most competitive races in this year’s election


TCUD January 2018 Newsletter (link)

The January 17, 2018 issue is now available on the Department’s website at:

Newsletter January 2018


TCUD December 2017 Newsletter (link)

The December 20, 2017 issue is now available on the Department’s website at:

Newsletter December 2017


TCUD November 2017 Newsletter (link)

The November 15, 2017 issue is now available on the Department’s website at:

Newsletter November 2017


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